Energy company Essar, which owns the Stanlow oil refinery, has advised shareholders to ignore an offer from a hostile bidder.

In February Essar Global Fund Ltd (EGFL), which already owns 78.2% of the India-facing business, announced it was considering an offer for the remaining shares in the group.

Last month it launched a non-recommended offer of 70p per share. That compares with 420p a share when Essar was floated on the London Stock Exchange in 2010.

An independent committee of the board of Essar rejected the offer, saying it undervalued the remaining stake in the group.

However, today, Energy Bidco Holdings Ltd (EGFL Bidco) published an offer document which it has sent to all shareholders outlining its offer of 70p per share for stock not already owned by EGFL and for Essar Energy convertible bonds at 80%.

The independent committee, on the instruction of advisers J. P. Morgan Cazenove and Greenhill, said it continues to believe that the shares offer “materially undervalues the company and its prospects”.

It said it will write to Essar Energy shareholders and Essar Energy convertible bondholders by no later than April 25 to set out its views on the shares and bonds offer in further detail.

It added: “In advance of receiving the independent committee’s views on the shares offer, the independent committee recommends that Essar Energy shareholders take no action in relation to the shares offer.”

When EGFL revealed its interest in acquiring the remaining shares in the group, its potential offer was criticised by institutions as “cynical opportunism” which should not be allowed to proceed.